Moutai: not for the masses

It takes courage to suggest a ban on official tippling of Moutai – China’s most luxurious liquor – right before Chinese New Year. This is the season of official banquets, ahead of a week-long public holiday to celebrate the lunar new year, or spring festival.

But this is also the week when a Shanghai legislator suggested prohibiting moutai at such banquets, in response to public criticism.

Shen Haixiong, a deputy to the Shanghai Municipal People’s Congress (aka legislature), says drinking the stuff at an official banquet is “an abuse of public funds”. The fact that Shen is also editor in chief of Xinhua news agency’s Shanghai branch makes the suggestion even more unusual, since journalists the world over are seldom famed for their teetotal tendencies.

Shen is playing to the peanut gallery with this one: among rich Chinese, Moutai has never been more popular (and costly). Recently the Hurun Report, chronicle of all things wealthy in China, rated Moutai as the only Chinese brand in the top ten most popular gift brands preferred by mainland millionaires.

“Gift-giving is an essential part of Chinese culture,” Rupert Hoogewerf of the Hurun Report told a news conference in Beijing on Wednesday. “The money spent on gifts is staggering compared with the West.”

But for Shen, that just makes things worse: “as far as I know, the government is prohibited from luxury consumption,” he said, adding that Moutai prices are out of control. According to China Daily, a bottle of 53 per cent proof Flying Moutai – the brand’s bestseller – costs Rmb2,100 ($332), up from Rmb200 in 2000. As a result, Moutai expects full-year profit to jump 65 per cent in 2011, according to China Securities News.

Hardly surprisingly, Shen’s proposal was not universally welcomed – even by netizens, one of whom asked whether Bordeaux should also be banned.

“A dinner should not exceed four courses and one soup. But there is no clear legislation on specific standards of official receptions. It leaves room for luxury consumption, which has triggered a growing public outcry,” said Zhu Lijia, of the Chinese Academy of Governance. “But prohibiting drinking Moutai cannot solve the problem.”

Statistics from the Ministry of Finance showed 60 ministries and institutions spent more than Rmb3bn on government vehicles, receptions and overseas trips in 2010, but this does not include many ministries, government departments and local governments, China Daily said.